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ARTICLE · 18 JULY 2016

Supreme Court Issues Final Word on Code Protections Against Without Cause Dismissal

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After decades of debate, the highest court in Canada has answered the long-standing question as to whether non-unionized employees within federal jurisdiction can be dismissed "without cause".

CanadaEmployment and HR
N. David McInnes
N. David McInnes
Paul Boshyk
Paul Boshyk
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After decades of debate, the highest court in Canada has answered the long-standing question as to whether non-unionized employees within federal jurisdiction can be dismissed "without cause". In Wilson v. Atomic Energy of Canada Limited, 2016 SCC 29, the Supreme Court of Canada ("SCC") concluded that the unjust dismissal provisions, sections 240 to 246, of the Canada Labour Code ("Code") displace the ability of employers at common law to dismiss federally-regulated employees without cause.

Background

Wilson was a former procurement supervisor for Atomic Energy of Canada Limited ("AECL"), a federally-regulated nuclear science and technology laboratory. His employment was terminated by AECL, on a without cause basis, following four and one-half years of service. Even though AECL paid Wilson six months' severance pay, he complained under section 240 of the Code1 that he was "unjustly dismissed" and sought an order reinstating him in his employ with AECL.

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